Survey of current and former welfare recipients, 2000

MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 1
CHAPTER IX: USE AND KNOWLEDGE OF PROGRAMS
AND SERVICES
This chapter presents findings on the use of programs and services designed to help
welfare recipients to become self- sufficient. The following major topic areas are addressed:
· Awareness and use of the Earned Income Tax Credit ( EITC);
· Receipt of self- sufficiency services while on welfare;
· Receipt of job training and other assistance since leaving welfare; and
· Use of diversionary payments and Individual Development Accounts.
A. AWARENESS AND USE OF THE EARNED INCOME TAX CREDIT ( EITC)
· About 55 percent of the respondents who had left welfare had heard of the Earned
Income Tax Credit. This compares to 46 percent of respondents still on welfare
( Exhibit IX- 1).
· Of those who had left welfare, 41 percent had used the credit, compared to 33.5
percent of those still on welfare ( Exhibit IX- 2).
· Caucasians and blacks were much more likely than other respondents to have heard
of the tax credit ( Exhibit IX- 3). Only 37.7 percent of Native Americans in closed
cases had heard of the credit and only 31.7 percent in open cases.
· Persons who had not completed high school were less likely than more educated
respondents to have heard of the tax credit. Persons who had attended college were
about twice as likely to have heard of the tax credit as persons without a high school
diploma.
· Persons working for pay were more likely to have heard of the tax credit than
persons not working.
· Respondents in Bernalillo County were almost twice as likely to have heard of the
tax credit, as persons in McKinley County ( Exhibit IX- 4).
EXHIBIT IX- 1
HAVE YOU EVER HEARD OF THE EARNED INCOME TAX CREDIT?
-- BY CASE STATUS AT THE TIME OF THE SURVEY
Case Status at the Time of
the Survey
Heard of the
Credit
Not Heard of
the Credit
Not Sure
Closed from welfare 55.2% 43.1% 1.7%
Open on welfare 45.8% 51.8% 2.3%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 2
EXHIBIT IX- 2
HAVE YOU EVER USED THE EARNED INCOME TAX CREDIT?
-- BY CASE STATUS AT THE TIME OF THE SURVEY
Case Status at the Time
Of the Survey
Used the
Credit
Not Used the
Credit
Closed from welfare 40.9% 59.1%
Open on welfare 33.5% 66.5%
EXHIBIT IX- 3
PERCENT OF RESPONDENTS WHO HAD HEARD OF
THE EARNED INCOME TAX CREDIT,
BY SELECTED CHARACTERISTICS
Characteristic Closed Cases Open Cases
Current Employment Status
Working for pay 60.6% 56.1%
Not working for pay 46.2% 39.8%
Ethnicity
Hispanic 52.6% 41.6%
Caucasian 71.4% 64.9%
Native American 37.7% 31.7%
Black 71.4% 58.5%
Education
Did not complete high school or GED 37.0% 33.4%
Completed high school or GED only 57.4% 48.5%
Attended college 74.5% 65.1%
EXHIBIT IX- 4
PERCENT OF RESPONDENTS WHO HAD HEARD OF
THE EARNED INCOME TAX CREDIT,
BY COUNTY
County Closed Cases Open Cases
Bernalillo 61.9% 54.3%
Dona Ana 52.8% 37.0%
McKinley 33.8% 25.4%
San Juan 44.6% 50.0%
Chaves 48.2% 60.0%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 3
B. RECEIPT OF SELF- SUFFICENCY SERVICES WHILE ON WELFARE
· Among persons no longer on welfare, 20.3 percent had received help finding jobs
while on welfare, and 17.4 percent had received help with resumes and job
applications ( Exhibit IX- 5).
· Persons still on welfare reported getting more services than persons no longer on
welfare, with 31.2 percent having received help in finding jobs.
· About 20 percent of persons in closed cases had received help finding or paying for
child care while they were on welfare, compared to almost one- third of persons still
on welfare.
· Exhibit IX- 6 shows the percentage of respondents ( closed and open cases combined)
who had received help in finding jobs while on welfare. The percentage was
relatively high in Lea, San Miguel, and Santa Fe counties, and relatively low in
Otero, Chaves, and Valencia counties.
· In closed cases, respondents who reported having received services while on
welfare were asked to rate the importance of these services in their efforts to leave
welfare. As indicated in Exhibit IX- 7, most respondents who had received specific
services thought that they were very important. The services ranked as the most
valuable were help in getting a GED, help with child care, and assistance with
transportation.
EXHIBIT IX- 5
RECEIPT OF SERVICES BY PERSONS WHILE ON WELFARE
-- BY CASE STATUS WHEN SURVEYED
Service Received Closed Open
Help in finding job openings/ job referrals 20.3% 31.2%
Advice on job applications/ resumes 17.4% 26.8%
Help getting job training 11.3% 23.8%
Help completing GED or high school 8.2% 13.1%
Help getting work experience 11.6% 19.6%
Advice about family budgeting 5.0% 12.0%
Help with transportation 6.6% 17.5%
Help in finding or paying for child care 19.9% 32.8%
Vocational rehabilitation 0.5% 2.9%
Referral to mental health services 2.4% 6.0%
Domestic violence counseling 2.1% 4.6%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 4
EXHIBIT IX- 6
PERCENT OF RESPONDENTS WHO HAD RECEIVED HELP IN
FINDING JOB OPENINGS, BY COUNTY
( all cases)
County Percent
Bernalillo 24.7%
Dona Ana 22.4%
McKinley 21.2%
San Juan 26.1%
Chaves 20.9%
Valencia 20.2%
Curry 28.6%
Lea 32.3%
Eddy 28.8%
San Miguel 31.6%
Rio Arriba 23.3%
Santa Fe 30.2%
Otero 12.5%
EXHIBIT IX- 7
PERSONS WHO HAD RECEIVED SERVICES WHILE ON WELFARE
-- PERCEIVED IMPORTANCE IN HELPING THEM TO
GET OFF WELFARE
( closed cases)
Service Received
Very
Important
Help in finding job openings/ job referrals 70.2%
Advice on job applications/ resumes 75.0%
Help getting job training 75.5%
Help completing GED or high school 90.9%
Help getting work experience 77.1%
Advice about family budgeting 74.5%
Help with transportation 87.1%
Help in finding or paying for child care 91.4%
Referral to mental health services 73.9%
Domestic violence counseling 70.0%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 5
C. RECEIPT OF JOB TRAINING AND OTHER SERVICES SINCE LEAVING
WELFARE
· About 14 percent of persons who were no longer on welfare had received some type
of job training from their employer since leaving ( Exhibit IX- 8). Ten percent had
received training or education other than from an employer.
· Most of the training or education was provided by a community college or
university ( Exhibit IX- 9).
· As shown in Exhibit IX- 10, about 17 percent of persons still on welfare had
received training or education other than through the welfare agency.
EXHIBIT IX- 8
PERCENTAGE OF PERSONS WHO REPORTED RECEIVING VARIOUS
TYPES OF ASSISTANCE SINCE LEAVING WELFARE
( closed cases)
Type of Assistance Percent
Job training from an employer 14.1%
Job training/ education ( not from an employer) 10.0%
Job placement assistance 4.7%
Transportation assistance 4.9%
Vocational rehabilitation 1.7%
Substance abuse treatment 1.7%
Domestic violence assistance 3.9%
Mental health counseling 6.8%
EXHIBIT IX- 9
AGENCY OR PERSON WHO PROVIDED JOB TRAINING
OR EDUCATION
Provider Percent
Welfare agency 12.8%
Unemployment office 1.1%
Other government agency 11.7%
Community- based organization 8.5%
Relative or friend 1.1%
Community college/ university 46.8%
Training provider 16.0%
Employer 2.1%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 6
EXHIBIT IX- 10
RESPONDENTS WHO HAD RECEIVED TRAINING/ EDUCATION
OTHER THEN THROUGH THE WELFARE AGENCY
( open cases)
Type of Training or Education Percent
GED or high school diploma 1.6%
Occupational skills training 9.4%
Community college/ university courses 6.2%
Other 0.1%
TOTAL 17.3%
D. ONE- TIME SUPPORT PAYMENTS AND INDIVIDUAL DEVELOPMENT
ACCOUNTS
· Among persons who had left welfare, only 1.9 percent reported having received a
one- time payment related to obtaining or keeping a job.
· Only about one percent of all respondents recalled having set up an Individual
Development Account.
EXHIBIT IX- 11
DID YOU EVER RECEIVE A ONE- TIME SUPPORT PAYMENT
RELATED TO OBTAINING OR KEEPING A JOB?
Received One- Time Payment? Closed Cases
Yes 1.9%
No 98.1%
EXHIBIT IX- 12
DID YOU EVER SET UP AN INDIVIDUAL
DEVELOPMENT ACCOUNT ( IDA)?
Set Up IDA? Closed Cases Open Cases
Yes 0.8% 1.2%
No 99.2% 98.8%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 7
E. DISCUSSION
The Earned Income Tax Credit is an important mechanism for helping welfare
recipients to leave welfare and stay off the rolls. The tax credit can be used to raise the
effective incomes of persons in low- wage jobs, thereby helping to counteract the argument that
low- paying jobs are not worth accepting. Awareness of the tax credit can be a valuable tool
for motivating current welfare recipients to accept low- paying jobs as the starting point in their
transition to self- sufficiency.
The fact that only 46 percent of current welfare recipients had heard of the tax credit
would suggest that welfare reform in New Mexico would benefit from more aggressive
outreach efforts to educate welfare recipients about the credit. These educational efforts might
also extend to former welfare recipients who are thinking of returning to welfare.
The results of the survey also suggest that there are many former welfare recipients
who are working and eligible to take the tax credit but who are not using it.
The fact that only 31 percent of current welfare recipients report having received help
in finding a job would suggest the need for some of the counties to provide more intensive
employment services to recipients, and to require recipients to participate more extensively in
such activities. The same would apply to providing advice on job applications and resumes.
The fact that very few respondents are taking advantage of diversionary payments or
Individual Development Accounts is not unexpected based on the experience of other states.
Some states have attempted to deal with this problem by loosening the restrictions on
diversionary payments and by allowing savings accounts to be used for a greater variety of
activities. It is also important to ensure that staff in local offices are adequately trained in
policies and procedures. Studies in other states, for example, have shown that eligibility
workers are often reluctant to pursue diversion options with applicants because they do not feel
comfortable with the new policies and procedures.

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Title from New Mexico Human Services Dept. web page -- heading above links to publication chapters in PDF.; No title page in PDF.; "... telephone surveys began in early November 1999."--p. I-1; As of 6/16/2005, web page also contains link to a 2002 publication of the New Mexico TANF longitudinal study.; Harvested from the web on 7/12/05

Transcript

MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 1
CHAPTER IX: USE AND KNOWLEDGE OF PROGRAMS
AND SERVICES
This chapter presents findings on the use of programs and services designed to help
welfare recipients to become self- sufficient. The following major topic areas are addressed:
· Awareness and use of the Earned Income Tax Credit ( EITC);
· Receipt of self- sufficiency services while on welfare;
· Receipt of job training and other assistance since leaving welfare; and
· Use of diversionary payments and Individual Development Accounts.
A. AWARENESS AND USE OF THE EARNED INCOME TAX CREDIT ( EITC)
· About 55 percent of the respondents who had left welfare had heard of the Earned
Income Tax Credit. This compares to 46 percent of respondents still on welfare
( Exhibit IX- 1).
· Of those who had left welfare, 41 percent had used the credit, compared to 33.5
percent of those still on welfare ( Exhibit IX- 2).
· Caucasians and blacks were much more likely than other respondents to have heard
of the tax credit ( Exhibit IX- 3). Only 37.7 percent of Native Americans in closed
cases had heard of the credit and only 31.7 percent in open cases.
· Persons who had not completed high school were less likely than more educated
respondents to have heard of the tax credit. Persons who had attended college were
about twice as likely to have heard of the tax credit as persons without a high school
diploma.
· Persons working for pay were more likely to have heard of the tax credit than
persons not working.
· Respondents in Bernalillo County were almost twice as likely to have heard of the
tax credit, as persons in McKinley County ( Exhibit IX- 4).
EXHIBIT IX- 1
HAVE YOU EVER HEARD OF THE EARNED INCOME TAX CREDIT?
-- BY CASE STATUS AT THE TIME OF THE SURVEY
Case Status at the Time of
the Survey
Heard of the
Credit
Not Heard of
the Credit
Not Sure
Closed from welfare 55.2% 43.1% 1.7%
Open on welfare 45.8% 51.8% 2.3%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 2
EXHIBIT IX- 2
HAVE YOU EVER USED THE EARNED INCOME TAX CREDIT?
-- BY CASE STATUS AT THE TIME OF THE SURVEY
Case Status at the Time
Of the Survey
Used the
Credit
Not Used the
Credit
Closed from welfare 40.9% 59.1%
Open on welfare 33.5% 66.5%
EXHIBIT IX- 3
PERCENT OF RESPONDENTS WHO HAD HEARD OF
THE EARNED INCOME TAX CREDIT,
BY SELECTED CHARACTERISTICS
Characteristic Closed Cases Open Cases
Current Employment Status
Working for pay 60.6% 56.1%
Not working for pay 46.2% 39.8%
Ethnicity
Hispanic 52.6% 41.6%
Caucasian 71.4% 64.9%
Native American 37.7% 31.7%
Black 71.4% 58.5%
Education
Did not complete high school or GED 37.0% 33.4%
Completed high school or GED only 57.4% 48.5%
Attended college 74.5% 65.1%
EXHIBIT IX- 4
PERCENT OF RESPONDENTS WHO HAD HEARD OF
THE EARNED INCOME TAX CREDIT,
BY COUNTY
County Closed Cases Open Cases
Bernalillo 61.9% 54.3%
Dona Ana 52.8% 37.0%
McKinley 33.8% 25.4%
San Juan 44.6% 50.0%
Chaves 48.2% 60.0%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 3
B. RECEIPT OF SELF- SUFFICENCY SERVICES WHILE ON WELFARE
· Among persons no longer on welfare, 20.3 percent had received help finding jobs
while on welfare, and 17.4 percent had received help with resumes and job
applications ( Exhibit IX- 5).
· Persons still on welfare reported getting more services than persons no longer on
welfare, with 31.2 percent having received help in finding jobs.
· About 20 percent of persons in closed cases had received help finding or paying for
child care while they were on welfare, compared to almost one- third of persons still
on welfare.
· Exhibit IX- 6 shows the percentage of respondents ( closed and open cases combined)
who had received help in finding jobs while on welfare. The percentage was
relatively high in Lea, San Miguel, and Santa Fe counties, and relatively low in
Otero, Chaves, and Valencia counties.
· In closed cases, respondents who reported having received services while on
welfare were asked to rate the importance of these services in their efforts to leave
welfare. As indicated in Exhibit IX- 7, most respondents who had received specific
services thought that they were very important. The services ranked as the most
valuable were help in getting a GED, help with child care, and assistance with
transportation.
EXHIBIT IX- 5
RECEIPT OF SERVICES BY PERSONS WHILE ON WELFARE
-- BY CASE STATUS WHEN SURVEYED
Service Received Closed Open
Help in finding job openings/ job referrals 20.3% 31.2%
Advice on job applications/ resumes 17.4% 26.8%
Help getting job training 11.3% 23.8%
Help completing GED or high school 8.2% 13.1%
Help getting work experience 11.6% 19.6%
Advice about family budgeting 5.0% 12.0%
Help with transportation 6.6% 17.5%
Help in finding or paying for child care 19.9% 32.8%
Vocational rehabilitation 0.5% 2.9%
Referral to mental health services 2.4% 6.0%
Domestic violence counseling 2.1% 4.6%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 4
EXHIBIT IX- 6
PERCENT OF RESPONDENTS WHO HAD RECEIVED HELP IN
FINDING JOB OPENINGS, BY COUNTY
( all cases)
County Percent
Bernalillo 24.7%
Dona Ana 22.4%
McKinley 21.2%
San Juan 26.1%
Chaves 20.9%
Valencia 20.2%
Curry 28.6%
Lea 32.3%
Eddy 28.8%
San Miguel 31.6%
Rio Arriba 23.3%
Santa Fe 30.2%
Otero 12.5%
EXHIBIT IX- 7
PERSONS WHO HAD RECEIVED SERVICES WHILE ON WELFARE
-- PERCEIVED IMPORTANCE IN HELPING THEM TO
GET OFF WELFARE
( closed cases)
Service Received
Very
Important
Help in finding job openings/ job referrals 70.2%
Advice on job applications/ resumes 75.0%
Help getting job training 75.5%
Help completing GED or high school 90.9%
Help getting work experience 77.1%
Advice about family budgeting 74.5%
Help with transportation 87.1%
Help in finding or paying for child care 91.4%
Referral to mental health services 73.9%
Domestic violence counseling 70.0%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 5
C. RECEIPT OF JOB TRAINING AND OTHER SERVICES SINCE LEAVING
WELFARE
· About 14 percent of persons who were no longer on welfare had received some type
of job training from their employer since leaving ( Exhibit IX- 8). Ten percent had
received training or education other than from an employer.
· Most of the training or education was provided by a community college or
university ( Exhibit IX- 9).
· As shown in Exhibit IX- 10, about 17 percent of persons still on welfare had
received training or education other than through the welfare agency.
EXHIBIT IX- 8
PERCENTAGE OF PERSONS WHO REPORTED RECEIVING VARIOUS
TYPES OF ASSISTANCE SINCE LEAVING WELFARE
( closed cases)
Type of Assistance Percent
Job training from an employer 14.1%
Job training/ education ( not from an employer) 10.0%
Job placement assistance 4.7%
Transportation assistance 4.9%
Vocational rehabilitation 1.7%
Substance abuse treatment 1.7%
Domestic violence assistance 3.9%
Mental health counseling 6.8%
EXHIBIT IX- 9
AGENCY OR PERSON WHO PROVIDED JOB TRAINING
OR EDUCATION
Provider Percent
Welfare agency 12.8%
Unemployment office 1.1%
Other government agency 11.7%
Community- based organization 8.5%
Relative or friend 1.1%
Community college/ university 46.8%
Training provider 16.0%
Employer 2.1%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 6
EXHIBIT IX- 10
RESPONDENTS WHO HAD RECEIVED TRAINING/ EDUCATION
OTHER THEN THROUGH THE WELFARE AGENCY
( open cases)
Type of Training or Education Percent
GED or high school diploma 1.6%
Occupational skills training 9.4%
Community college/ university courses 6.2%
Other 0.1%
TOTAL 17.3%
D. ONE- TIME SUPPORT PAYMENTS AND INDIVIDUAL DEVELOPMENT
ACCOUNTS
· Among persons who had left welfare, only 1.9 percent reported having received a
one- time payment related to obtaining or keeping a job.
· Only about one percent of all respondents recalled having set up an Individual
Development Account.
EXHIBIT IX- 11
DID YOU EVER RECEIVE A ONE- TIME SUPPORT PAYMENT
RELATED TO OBTAINING OR KEEPING A JOB?
Received One- Time Payment? Closed Cases
Yes 1.9%
No 98.1%
EXHIBIT IX- 12
DID YOU EVER SET UP AN INDIVIDUAL
DEVELOPMENT ACCOUNT ( IDA)?
Set Up IDA? Closed Cases Open Cases
Yes 0.8% 1.2%
No 99.2% 98.8%
MAXIMUS
Chapter IX: Use and Knowledge of Programs and Services Page IX- 7
E. DISCUSSION
The Earned Income Tax Credit is an important mechanism for helping welfare
recipients to leave welfare and stay off the rolls. The tax credit can be used to raise the
effective incomes of persons in low- wage jobs, thereby helping to counteract the argument that
low- paying jobs are not worth accepting. Awareness of the tax credit can be a valuable tool
for motivating current welfare recipients to accept low- paying jobs as the starting point in their
transition to self- sufficiency.
The fact that only 46 percent of current welfare recipients had heard of the tax credit
would suggest that welfare reform in New Mexico would benefit from more aggressive
outreach efforts to educate welfare recipients about the credit. These educational efforts might
also extend to former welfare recipients who are thinking of returning to welfare.
The results of the survey also suggest that there are many former welfare recipients
who are working and eligible to take the tax credit but who are not using it.
The fact that only 31 percent of current welfare recipients report having received help
in finding a job would suggest the need for some of the counties to provide more intensive
employment services to recipients, and to require recipients to participate more extensively in
such activities. The same would apply to providing advice on job applications and resumes.
The fact that very few respondents are taking advantage of diversionary payments or
Individual Development Accounts is not unexpected based on the experience of other states.
Some states have attempted to deal with this problem by loosening the restrictions on
diversionary payments and by allowing savings accounts to be used for a greater variety of
activities. It is also important to ensure that staff in local offices are adequately trained in
policies and procedures. Studies in other states, for example, have shown that eligibility
workers are often reluctant to pursue diversion options with applicants because they do not feel
comfortable with the new policies and procedures.